The Securities and Exchange Commission (SEC) is probing Bored Ape Yacht Club creator Yuga Labs over its NFTs and whether they violate any federal law.
An unnamed source revealed to Bloomberg that the question at the heart of the probe is whether Yuga Labs NFTs should follow the same disclosed rules as stocks if they are found to be holding any similar traits.
The SEC are also pondering whether the NFTs on the site are listed as securities – defined as any fungible or financial instrument that can raise capital in a public and private market – which have been largely unregulated along with cryptocurrencies in the US.
Along with its NFT offerings, Yuga Labs have also been approached by the SEC over questions surrounding apeCoin and how the utility tokens work within its infrastructure. apeCoins were distributed to NFT owners of Bored Ape Yacht Club, Mutant Ape Yacht Club and Bored Ape Kennel Club.
Yuga Labs have affirmed that they are not the creator of apeCoin due to regulatory means. The APE Foundation defines itself as a “steward” of the token, used to become a “base layer on which apeCoin holders in the apeCoin DAO can build”.
Sources, according to Bloomberg, state that NFT creators and crypto exchanges were being looked at.
In response to the SEC’s probe, a Yuga Labs spokesperson stated: “It’s well known that policymakers and regulators have sought to learn more about the novel world of Web3.
“We hope to partner with the rest of the industry and regulators to define and shape the burgeoning ecosystem. As a leader in the space, Yuga is committed to fully cooperating with any inquiries along the way.”